Dell 2007 Annual Report Download - page 87

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Fiscal 2007:
Accumulated
As of February 2, 2007 Gross Amortization Net
(in millions)
Technology $ 7 $ (2) $ 5
Customer relationships 11 (1) 10
Tradenames 31 (2) 29
Covenants not-to-compete 1 - 1
Total amortizable intangible assets $ 50 $ (5) $ 45
During Fiscal 2008 and Fiscal 2007, Dell recorded additions to intangible assets of $762 million and $50 million, respectively.
Amortization expense related to finite-lived intangible assets was approximately $27 million in Fiscal 2008 and $5 million in Fiscal 2007.
During the year ended February 1, 2008, Dell did not record any impairment charges as a result of its analysis of its intangible assets.
Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of February 1, 2008, over the next five fiscal
years and thereafter is as follows:
Fiscal Years (in millions)
2009 $ 102
2010 154
2011 135
2012 113
2013 92
Thereafter 157
Total $ 753
NOTE 9 — WARRANTY LIABILITY AND RELATED DEFERRED SERVICE REVENUE
Revenue from extended warranty and service contracts, for which Dell is obligated to perform, is recorded as deferred revenue and
subsequently recognized over the term of the contract or when the service is completed. Dell records warranty liabilities at the time of
sale for the estimated costs that may be incurred under its limited warranty. Changes in Dell's deferred revenue for extended warranties,
and warranty liability for standard warranties which are
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